Education Improvement Tax Credit

United Way of Carlisle and Cumberland County

Businesses Provide Preschool Scholarship Funding

United Way of Carlisle & Cumberland County and its early childhood initiative, Success By 6, are approved as a Pre-Kindergarten Scholarship Organization by the Pennsylvania Department of Community and Economic Development. This designation allows us to provide tuition assistance for pre-kindergarten programs to children whose families are in financial need.

Thank you to the following local businesses who provided $64,000 in state tax credits for preschool scholarships for families in 2021:

  • Capital Advantage Insurance Company
  • LeTort Trust
  • M&T Bank
  • Orrstown Bank
  • PNC
  • PPL Electric Utilities
  • S&T Bank
  • Troegs Brewing Company

Success By 6 awarded 17 scholarships to families for the 2020-2021 school year. Success By 6 works to ensure that every child is prepared and ready to succeed by the time they enter kindergarten.

Pre-Kindergarten Educational Improvement Tax Credit 

Children Matter!

United Way of Carlisle & Cumberland County and its preschool initiative, Success By 6, are committed to ensuring that all children in our community have access to high-quality early childhood education to ensure success in school and throughout their lives. 

To this end, The United Way of Carlisle & Cumberland County and Success By 6 have been approved as a pre-kindergarten scholarship organization by the Pennsylvania Department of Community and Economic Development (DCED). This designation allows us to provide scholarship assistance for pre-kindergarten programs to children whose families are in financial need. 

How Does it Work?

In 2003, PA Act 48 amended the Educational Improvement Tax Credit (EITC) program to provide for the establishment of a pre-kindergarten tax credit for eligible businesses. 

How Do I Receive Tax Credit?

By contributing to an approved pre-kindergarten scholarship organization such as United Way of Carlisle & Cumberland County and Success By 6. 

What is the Amount of Tax Credit?

A business may receive a tax credit equal to 100% of the first $10,000 contributed to a pre-kindergarten scholarship organization during the taxable year. A business may receive a tax credit equal to 90% of any additional amount contributed during the taxable year, up to a maximum of $200,000 of tax credits per taxable year. 

Who is Eligible?

Businesses that are subject to the following taxes may apply for tax credits:

  • Corporate Net Income Tax
  • Capital Stock Franchise Tax
  • Bank and Trust Company Shares Tax
  • Insurance Premiums Tax
  • Mutual Thrift Institutions Tax
  • Title Insurance Companies Shares Tax
  • Personal Income Tax of “S” Corporation shareholders or partnership owners
  • Malt Beverage Tax
  • Retaliatory Fees

When Can a Business Apply to DCED for Tax Credit Approval?

Applications for tax credits for the fiscal year, July 1 through June 30, are typically accepted beginning July 1. Business applicants who are in their second year of a two-year commitment and businesses who are in the middle of their two-year commitment are typically due in May. Please check the DCED website at dced.pa.gov for specific deadlines. 

The Process: 

  1. Applications are available at dced.pa.gov and must be submitted electronically. 
  2. Complete the application to DCED stating the amount of tax credit contribution your business will make to the United Way of Carlisle & Cumberland County and Success By 6. 
  3. Your business will receive written notification of approval from DCED.
  4. Send your contribution to the United Way of Carlisle & Cumberland County and Success By 6, an approved pre-kindergarten scholarship organization, within 60 days. 
  5. The United Way of Carlisle & Cumberland County and Success By 6 will send written acknowledgement to your business within 30 days. 
  6. Your business must forward a copy of this acknowledgement to DCED within 90 days of original notification. 
  7. File your tax return as usual and claim the tax credit for your contribution. 

A Winning Proposal for Everyone!

  • Employers win by investing their tax dollars in their local community and future workforce.
  • Parents win because they are more productive employees knowing that their children are in high-quality childcare and early education programs. 
  • Children win because they are in nurturing programs designed to prepare them to enter kindergarten reading to learn. 

For more information, please contact Karen Quinn at [email protected] or 717-243-4805.